Buying a house is known to be a necessity today. Many people tend to spend their hard-earned life savings on buying the house. With increasing property rates and so much of expenditure never lets many people buy their house of dreams at right time. Home loan can help you buy your house at the right time without burdening your current lifestyle. Planning finances can be a long and slow process and meanwhile you can lose a very important property now you were eyeing on. You can work on spendable finances and then apply for home loan accordingly. If you wonder how much you need to pay if you take specific amount of loan, no worries because you can always search online and calculate on home loan EMI calculator. It will tell you the exact amount which you need to pay along with the rate of interest. You will find many banks which will lend you loan at very exciting schemes. Now before availing the loan, you can increase your home loan eligibility by following tips –
Increase Home Loan eligibility with these Tips –
Home loan eligibility is the amount which is maximum permissible to an individual based on their income and credit history. The eligibility depends upon person to person and to get your loan sanctioned, you amount needs to be under eligibility otherwise there are chances that it can get rejected. Factors that can increase your chances of getting eligible for home loan are as follows –
- You need to be employed for at least 2 years.
- If you are having you spouse who is also employed.
- Having a smaller number of people who are dependent on you currently.
- If you are paying your credit card dues timely.
- Regular rental payments and no bad history of credit.
- If you are minimum of 18 years of age and do not fall under senior citizen age.
- No ongoing loan such as – car loan or any else.
You can also check on home loan EMI calculator and decide for yourself if you would be able to pay this much amount as monthly EMI or not. Consider these factors, before applying for loan. Here are few tips which will help you enhance you chance for home loan eligibility if you are planning to apply for it –
- Clear your existing Loan amounts and credit card dues – If you have any pre- existing loan on yourself, you will lose chances of getting you loan approved. Firstly, ensure that you have cleared your dues such as – credit card, paid all the pre- existing loan and then start a new one. Also, in case you are thinking to take two loans at a time then it is better to drop the idea and focus on having one only. Focusing on one loan and having good credit history earlier increases the chance that your loan will be sanctioned, and eligibility will increase. Lenders may have an image that borrower has already too many financial responsibilities and won’t be able to repay on time. All the existing banks first do a check on the credit history, income and pre- existing loans. Then only they take a decision to either reject or approve the loan.
- Take Loan for longer duration – You can opt for loans on longer duration. It will ensure all the bankers and lenders that you have plenty of time repay your amount. Also, by taking loan on long duration, you will be paying less monthly EMI which can be affordable for people on lo salaries. Taking long tenure loans is only possible when your age is less than a senior citizen age and will be earning throughout the period. If you expect that opting for a loan just before retirement for longer duration, it won’t be applicable at all. Before applying for Home loan, you can self- check the amount you need to pay if you are opting for that much money through home loan EMI calculator. Then decide if your income and financial responsibilities allow you to pay the amount. Try not to apply for unrealistically high amount loans as it will only lead you to rejection of the loan.
- Addition of a co- applicant – You can take the loan by putting a name of co- applicant if that person is earning. Dual income will prove and gain trust of the bank that you will be paying the loan timely. The co- applicant could be a family member or spouse. Make sure that the name you are putting is financially independent. If the lender verifies that you have more than one source of income and less dependents on you then your Home loan eligibility can increase and chances that it will get sanctioned are positive.
- Step – up Loan option – Have you ever heard of step- up loans? If not, you can explore this option as well. All you must do is to ask you banks or lenders for the same. Usually it is a good option for candidates with low income. They start with lower rate of interests initially then they gradually increase the interest rate with passage of time. This method results in low monthly EMI and ease in affordability. Many lenders do have these options and some of them don’t so keep a check and consider step- up loans as well. It will increase your chance to get eligible for loan.
- Improvise your credit Score –You can easily improvise your credit score by clearing all the dues on time. Paying monthly rents, bills, credit card dues etc. timely. It is a very good thing to keep up your score above 750. It increases lots of chances in your eligibility. According to the Credit information bureau, in most of the cases, loans are only sanctioned based on the credit score history so you can take this aspect into serious consideration.
You can consider these tips to increase your home loan eligibility. Before applying for borrowing the funds, ensure that you have a good credit history, take all the necessary step and then go for it. Before availing the loan, get all the documents ready, be sure about the property decision. You may compare the ban interest rates, benefits and your feasibility. Follow the guidelines and you will surely succeed in sanctioning your loan. Be prepared for the monthly EMI and take care of your finances on side by side. Now your dream home is almost just one home loan decision away form you.